Ontario Regulation 50/25 introduces significant amendments to the Rules of Civil Procedure, primarily aimed at refining the processes surrounding settlements, especially where parties under disability are involved. This regulation updates Regulation 194 of the Revised Regulations of Ontario, 1990, which governs procedural rules in civil litigation. The amendments clarify and improve the procedural framework for approval, disclosure, and management of settlements and related motions, providing greater protection and transparency in cases involving vulnerable parties.

One of the central changes involves Rule 7.08, which concerns the approval of settlements by a judge. The regulation modifies subrule 7.08 (2.1) by removing the reference to “or judgment,” simplifying the language. Importantly, a new subrule (3.1) allows motions or applications for judicial approval of a settlement to be made by a litigation guardian on behalf of a person under disability without the need to notify other parties, unless otherwise ordered by a judge. This is a key protection ensuring that vulnerable parties can have settlements approved efficiently and confidentially if necessary. Alongside this, the regulation requires that parties seeking settlement approval file a motion or application record with a clear table of contents detailing each document and exhibit, improving organization and clarity for the court.

The regulation also updates Rule 49, retitled simply as “Settlement,” to reflect these procedural changes more broadly. It applies to a wider range of claims, applications, and motions, including counterclaims and third-party claims, with necessary modifications. Notably, Rule 49.08 is amended to emphasize that while a party under disability may make, withdraw, or accept settlement offers, such acceptances are not binding without a judge’s approval under Rule 7.08. This reinforces judicial oversight in protecting parties who may lack full capacity to make binding decisions.

The regulation takes precedence over any confidentiality agreements among parties, requiring full disclosure of the terms except the monetary amounts. Failure to comply with these disclosure requirements can lead to serious consequences, including cost orders, additional discovery, document production orders, striking evidence, adjournments, stays of proceedings, or other just orders, underscoring the importance of transparency.

Regarding the disclosure of monetary settlement amounts, the regulation clarifies that when no party under disability is involved, existing disclosure obligations remain unaffected. However, if a party under disability is involved, the litigation guardian must seek the court’s direction on whether the settlement amount must be disclosed, potentially during a case conference or via a motion conducted without notice, ensuring that disclosure is handled sensitively and appropriately.

Ontario (50/2025) 21, 2027
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